In New York, the Dow Jones Industrial went out of trading at 31'135.09 points (+0.01%) virtually unchanged from the previous day's close. The S&P 500 gained +0.34% to 3'946.01 points and on the Nasdaq, indices gained about +0.8%. After the latest data published in the last two days on the development of consumer and producer prices in the U, hopes for an early easing of high inflation seem to have been dashed. As a result, the US central bank will have to raise interest rates further. The yield on ten-year US government bonds remained stable at 3.41%, while the US dollar traded just below parity against the euro.
In Asia, most stock indices trended moderately in positive territory. In Japan, the Nikkei 225 gained about +0.15%. According to the latest data, the Japanese trade balance showed the 13th consecutive month in deep red figures due to the increased cost of energy imports and the weak yen. The deficit reached a record EUR 19.5 billion in August. In mainland China, the Shanghai Composite climbed around +0.4% today and in Hong Kong, the Hang Seng is up nearly +0.5%.
US producer prices have weakened in August about as expected. On an annual basis, the Labor Department in Washington communicated an inflation rate of +8.7% (consensus +8.8%). In July, the rate of increase in producer prices had still been +9.8%. In the core rate, i.e. excluding energy prices, the inflation rate amounted to +7.3%, well above the +7.0% forecast by analysts, but slightly lower than in the previous month at +7.7%. On a monthly basis, core producer prices rose by +0.4%. With both consumer price and producer price data showing persistent inflationary pressures, the Fed is likely to be doomed to tighten its monetary policy further. As a result, another hefty 75 basis point rate hike is expected next Wednesday.
British consumer prices fell slightly in August from a very high level. On an annual basis, inflation was reported at +9.9% compared with +10.1% registered in July - the highest level in around 40 years. A decline in fuel prices had a dampening effect. However, the still strongly rising food prices kept up inflationary pressure. The British central bank is expected to tackle high inflation next week with a new interest rate hike.
Industrial production in the eurozone fell more sharply than economists had expected in July. On a monthly basis, output fell by -2.3%, while analysts had on average expected a decline of -1.1%. The production of capital goods fell particularly sharply by -4.2% compared with the previous month. On the other hand, however, industrial production in June was stronger than previously expected, rising by a revised +1.1% instead of the originally estimated +0.7%.
|08:00||GE||Whole Sale Prices (August, y/y)||+19.5%|
|08:45||FR||Consumer Prices (August, y/y)||+6.5%|
|11:00||EZ||Trade Balance (July)||EUR -24.6bn|
|14:30||US||Retail Sales (August, m/m)||0.0%|
|14:30||US||Import Prices (August, y/y)||-1.4%|
|14:30||US||Initial Jobless Claims (weekly)||233,000|
|14:30||US||Philly Fed Manufacturing Index (September)||-10.6|
|15:15||US||Industrial Production (August, m/m)||+0.6%|
Publisher: LGT Bank (Switzerland) Ltd., Glärnischstrasse 36, CH-8027 Zurich
Editor: Alessandro Fezzi, E-Mail: firstname.lastname@example.org
Source: LGT Bank (Switzerland) Ltd.
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